Sectors

Funds

Jersey has developed a well-respected and forward-thinking funds sector that offers regimes from retail options through to the more sophisticated and institutional end of the market.

Jersey Finance

Overview Latest
£410 billion

net asset value of regulated funds under administration

89%

of our overall funds business is in alternatives

434 Jersey Private Funds

formed since their launch in 2017

In brief In more recent years, Jersey has evolved into a specialist centre for the alternative asset classes, including hedge, real estate and private equity funds, which account for around 87%* of its overall funds business.

The industry has a net asset value of £410 billion and a total of 745 regulated collective investment funds* established. Currently, figures for the increasingly popular Jersey Private Fund are not included, meaning the actual net -asset value figure is much higher.

Funds Factsheets ›

Keep up to date on the latest developments with our funds factsheets.

Key Facts

Jersey has attracted a significant number of venture capital, private equity, mezzanine, real estate, infrastructure and hedge funds. For example, the net asset value of single class private equity funds under administration in Jersey stands at £149.1billion*

Providing significant flexibility for investor needs, Jersey continues to improve laws and regulations in order to provide better choices for investors. Some key facts include:

  • The net asset value of regulated funds under administration stood at £410bn as at the end of Q1 2021
  • Alternative asset classes represent 89% of total funds business in Jersey, with private equity and venture capital up by 21% year-on-year to £164.6bn
  • Significant money is being raised from a wide range of EU countries. Jersey has seen an annual increase of 9% in fund managers using Jersey to market funds into Europe (source: JSFC)
Why Jersey for Funds

With its political and fiscal stability and a no change outlook from a regulatory, legal or economic perspective, Jersey is a destination of choice for fund managers choosing where to locate either their funds or management company.  Click a segment of our ‘wheel’ to explore the key drivers behind fund managers selecting Jersey.

 

AIFMD and NPPRs

AIFMD

Jersey has a legal, tax and regulatory framework, which supports the continued functioning of the Jersey fund management and services industry under the Alternative Investment Fund Managers Directive.

Jersey was the first ‘third country’ to offer a fully compliant opt-in regime under AIFMD, meaning that Jersey will be able to offer a passporting option under AIFMD as soon as it becomes available to third country managers.

A Jersey manager can establish different Jersey funds to access:

  • The EU through National Private Placement Regimes (NPPRs); and
  • The ‘rest of the world’ through business as usual

You can find out more on where investors in Jersey funds are currently based in the KPMG report, ‘Analysis of the Jersey Alternative Funds Sector Investor Base’.

NPPRs

Jersey has a fully flexible funds regime and, unlike other jurisdictions, offers easy and cost-effective access to EU investors via marketing within the EU through National Private Placement Regimes (NPPRs). As Jersey is not an EU Member State, it is not subject to the scope of the Alternative Investment Fund Managers Directive (AIFMD) when targeting investors outside the EU.

To see how well NPPRs are being used in Jersey, see our video below or view our interactive map showing which EU countries we work with.

Find out more about the Jersey regime by reading our factsheet.

Skilled Workforce

With more than 13,700 highly skilled and experienced finance industry professionals, over 2,000 of which are employed in fund management and legal services, Jersey offers an exceptionally large pool of expertise, including a wealth of professional non-executive directors with extensive knowledge of funds across a variety of asset classes.

Jersey is also able to offer clients access to a wealth of expertise from Jersey service providers, including fund administrators, banks, custodians, depositories, accountants, tax advisers and legal professionals, who have the knowledge and international connections to deliver perfectly tailored products and specialist vehicles, whatever the investment objectives.

A range of national and international financial services firms are based in Jersey. Visit our Business Directory for a list of firms operating in Jersey or to search for a specific organisation.

Regulation

The international regulatory and legislative landscape is changing all the time. Jersey’s funds regime reacts with agility, offering managers a full spectrum of regulatory options. Lawyers work closely with counterparts in all of the world’s major centres, including London, the US, China, India and the GCC, to deliver structured products and specialist vehicles that meet a whole range of financial and investment objectives.

Jersey fund vehicles may be approved in as little as 48 hours by the regulator, the Jersey Financial Services Commission (JFSC), which is responsible for the regulation, support and development of the finance industry.

Innovation

The funds industry is constantly evolving, and Jersey’s fund administration firms and legal professionals are at the forefront of a range of emerging trends. Take alternative investments such as venture capital, private equity, real estate and hedge funds for example. Jersey has worked hard to develop expertise in these areas, as well as with funds in cutting-edge asset classes like mezzanine and infrastructure.

Jersey remains focused on developing its funds regime and on providing innovative solutions. Recently introduced, the Jersey Private Fund consolidates and streamlines Jersey’s private fund offering, enabling funds with up to 50 investors to take advantage of a fast-track authorisation process and lighter ongoing regulatory requirements. A new, manager-led, Jersey Alternative Investment Fund is also in the pipeline.

Endorsements

Jersey has been at the forefront of funds services for more than 50 years. In that time, the jurisdiction’s track record in the structuring, management and administration of fund vehicles has given it a world-class reputation, serving primarily institutional, specialist and expert investors.

The International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and the European Union (EU) have all endorsed Jersey as a top international finance centre. A major report published by MONEYVAL underlines Jersey’s ability to combat financial crime through a sophisticated system of capturing ownership information about entities and structures in the jurisdiction.

Jersey’s reputation as an international finance centre (IFC) of excellence has been endorsed by independent bodies and institutions of the highest standards – see our Awards and Accolades. Our reputation as a quality IFC  supports our work in a range of markets around the world, building better futures for global partners and investors.

Substance

Fund managers are putting substance at the heart of the decisions they make.

When it comes to substance, Jersey offers certainty. In March 2019, Jersey was assessed as a cooperative jurisdiction by EU finance ministers regarding the business taxation initiative from the EU Code of Conduct Group (COCG). Although funds are not subject to the substance requirements, where there is a Jersey resident company in the structure, such a company would be required to meet the criteria.

Jersey’s appeal as a jurisdiction of substance is evident not only through the presence of more than 120 fund promoters doing business on the Island, but through the number of high-profile manager relocations in recent years.

See our Jersey: Certainty and Substance factsheet for more information

Tax Neutrality

Jersey is a tax neutral jurisdiction for international business. This makes Jersey’s funds solutions far less complex than in other jurisdictions in that it offers:

a simple tax neutral regime – operational flexibility, with less complexity
no necessity for complex tax structuring
This simplified system means that, while the fund does not pay tax, investors from various countries with their individual tax systems will all pay the correct amount to their respective governments. Other onshore jurisdictions can offer a comparable arrangement, but require significantly more red tape, and ultimately cost, to orchestrate.

'No Change' Solution

Jersey’s own democratically elected Parliament and judicial system provides us with stability and independence.

Jersey has never been part of the EU, but has excellent, long-standing bilateral relationships with the EU’s Member States and established European market access arrangements for its asset management industry. These will not be impacted by the major initiatives impacting the industry, most notably, Brexit.

The majority of Jersey’s funds have a large base of UK investors, and the British Government has already stated that the relationship between the UK and Jersey will not be impacted by Brexit.

Therefore, Jersey also provides a ‘no change’ solution for access to UK investors. This unique position sets Jersey apart.

Discover more about Jersey’s Constitution.

videos
South African Fund Managers - Trends in Fund Domiciliation and Capital Raising
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National Private Placement Regimes (NPPRs)
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Jersey for US Fund Managers
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Jersey for South Africa Funds
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Socially Responsible Investing
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Put Simply: Funds
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Our work
Work
HFM Fund Domiciliation Series 2021
In these video interviews with our Head of Funds, Elliot Refson, HFM Week discusses ESG and Governance, Domiciles and Disruption, and Brexit and Market Access.
Read more ›
Work
The Future of International Fund Domiciliation 2021
This report sums up research conducted by IFI Global, and supported by Jersey Finance, to explore post-pandemic fund domiciliation trends. It’s based on the views of alternative managers, law firms and advisors from across North America, Europe and Australasia, including some of the world’s largest investors in alternatives.
Watch Now ›
Work
Why a New Media Fund Chose Jersey
In conversation with Leanne Wallser of Walkers and Jacqueline O'Mahony of Productivity Media, our Head of Funds, Elliot Refson, discovers more about why Productivity Media selected Jersey for the launch of their new fund for international film and TV projects.
Read more ›
Work
Migrating Foreign Limited Partnerships into Jersey
In this podcast we are joined by Simon Hopwood, Group Partner at Maples Group, the law firm who advised on the very first migration of a foreign limited partnership into Jersey under the new LP Laws. In it we discusses how this came about, how Jersey is adapting and responding to meet the needs of the finance industry, and why the Jersey Private Fund was the ideal vehicle for their client’s requirements.
Read more ›
Work
South African Fund Managers: Trends in Fund Domiciliation and Capital Raising
Produced by African Business Magazine, this report surveys more than 60 LPs and GPs globally and explores the emerging trends for fund domiciliation and capital raising, particularly as a route for private equity impact investing into the wider African continent.
Read more ›
Work
Jersey for Funds: Focus on Middle East Investors
In this series of articles taking a look at the increasing interest by investors from the Middle East in Jersey as a destination for funds, we explore the reasons why Jersey is the natural jurisdiction for meeting their alternative investment objectives.
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Work
Jersey for Sustainable Finance
When it comes to selecting a jurisdiction for sustainable finance, clients want a wide choice of structures that can be set up quickly, ideally in a tax-neutral location, where expertise is close at hand and disputes are easy to resolve. Reputation is key. Cost and convenience are critical. And familiarity is a reassuring bonus.

If you look at Jersey’s credentials, it’s clear that the Island meets every one of these criteria. These credentials, coupled with case studies from Jersey-based service providers and local organisations, show why Jersey is the clear choice for sustainable finance.
Read more ›

*Statistics correct as at December 2020

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